Examples of Effectiveness by Using ICDs with More Output
As D.R. Horton has expanded nationally, it has consolidated suppliers. (
Year 1997 – SIC 1531)
Explanation: The reduction in number of suppliers effectively extends the Output over which the supplier-related ICDs extend.
IBM refurbishes and then resells computers. (
Year 2001 – SIC 3571)
Explanation: The parts that IBM does not need to change in the refurbished computers are examples of ICDs that are used over more units of Output.
By shrinking stores and rolling them out in small towns, Big Box retailers are hoping to tap into a new pool of shoppers. (
Year 1999 – SIC 5399)
Explanation: The ICDs done for the bigger stores which can also be applied to the smaller stores, enable those ICDs to spread over more units of Output.
IBM aims to create a system that all divisions will use for tracking customer orders. (
Year 2003 – SIC 3571)
Explanation: This new single system for use by all divisions will enable the ICD of the design of the system to be used for more Output.
The Company standardized all processes. The cost reduction team insisted that files be stored alphabetically and in the same drawer at each work station. (
Year 2003 – SIC 6311)
Explanation: The standardization of the work processes enabled the Company to use a single training session to apply for all employees in the functional cost area. This extends the Output over which that training ICD applies.
Xerox consolidated seven general ledger systems into one and centralized work from four data centers into one. (
Year 1994 – SIC 3861)
Explanation: The standardization of the general ledger systems and consolidation of the data centers eliminated the number of set-up ICDs the Company used. This allowed the fewer set-up ICDs to be used over more Output.
A specialty steel manufacturer managed to convert customers to standardized, rather than customized, products over a five year period. (
Year 1991 – SIC 3312)
Explanation: By using standard products, the Company spread the product design ICDs over more Output.
Home Depot bought a private company that was the nation’s top direct mail marketer of maintenance and repair products to lodging managers. (
Year 1998 – SIC 5211)
Explanation: The acquisition of a company in a related business enabled Home Depot to spread its customer acquisition ICDs over more units of Output.
Schneider is the biggest transportation and logistics company in North America. It sends goods all over the world. It brokers freight to other carriers and it provides some financial services. (
Year 2002 – SIC 4213)
Explanation: The provision of more customer services related to transportation enables Schneider to spread its management ICDs over more units of Output.
Rival of Kansas City bought Bionaire of Montreal. Rival makes personal care and household appliances. Bionaire makes air purifiers and humidifiers. (
Year 1996 – SIC 3634)
Explanation: This acquisition enabled Rival to use fixed cost sales call ICDs over more units of Output.